Insights into investment opportunities in Kuwait Prepared by T he Consulate General of the State of Kuwait Kuwait Oil era1960 Modern Kuwait Kuwait Vision 2035 articulates HH the Amir ID: 547163
Download Presentation The PPT/PDF document "Kuwait Vision 2035: From Ideas to Realit..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Kuwait Vision 2035: From Ideas to Reality
Insights into investment opportunities in Kuwait
Prepared by: The Consulate General of the State of KuwaitSlide2
Kuwait
Oil era1960 Slide3
Modern KuwaitSlide4
Kuwait Vision 2035 articulates H.H. the Amir
Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah’s aspirations and is endorsed by the current Development Plan : to transform Kuwait into a world class financial and commercial
center, with the private sector leading economic activities, fostering competitiveness, increasing productivity, supported by viable public institutions, while maintaining the deep rooted values and national identity, towards achieving balanced economic and human development, supported by adequate infrastructure , legal framework, and enabling business environment. There are five strategic goals for attaining the vision namely: Increasing GDP & wellbeing, Private sector leading role, Supporting human & social development, Improving population policies, Efficient government administration .
Current plans are to link Kuwait with the Belt and Road initiative to serve 1.1 trillion USD market value of the surrounding regions.
Kuwait
Vision
2035Slide5
Total Area 17 818 km2Slide6
EconomySlide7
Why Invest in Kuwait?
H
igh level of human development
Rule of Law
Transparent legal
systemSlide8
Agreement on Trade (1980
)Agreement on Promotion and Protection of Investment (1985),
Agreement on Establishing Joint Economic and Trade Committee (1986)Agreement on Avoiding Double Taxation (1989)
Agreement on Economic and Technical Cooperation
(1989).
Air
Services Agreement
(2004)
Agreement between Kuwait Chamber
of
Commerce and
Industry and Hong Kong General
Chamber
of Commerce
(2004)
Double
Taxation Agreement
(2010)
Investment Promotion and Protection Agreement
(2010)
Economic
and Technical Cooperation
(2010)
Memorandum
of Understanding in Education (
HKUST/ HKU)
(2010)
Bilateral AgreementsSlide9
Starting a Business in Kuwait
Kuwaiti
company with equity up to 100%Limited liabilityClosed Joint StockOne Person
A Branch
of a foreign company.
Representative
office of a foreign company
(No
commercial activities).
Legal formsSlide10
Starting a Business in Kuwait
1- Ministry of Commerce & Industry (MOCI)
New legislation, still in forceKDIPA operations launched on December 29, 2014.Investors Service Centre (ISC) is currently dealing with existing & potential
investors till a full fledged
ONE STOP SHOP
is launched and becomes operational.
Online booking for appointments with account managers at ISC
.
Market entry Channels
2- Kuwait Direct Investment Promotion Authority (KDIPA) :
3-Central
Tenders
Committee (CTC) :
Bidding for government projects through CTC
Foreign investors can enter tenders if they have a Kuwaiti partner or Kuwaiti sponsor; however, if the foreign investor(s) are registered through (KDIPA), bidding can be done without a Kuwaiti partner or sponsor.
Old legislation, still in force
An option for foreign investors: Foreign
investors
are
subject to a ceiling of 49% (maximum
) while local citizen partners are entitled to 51%
Slide11
KDIPA Incentives
Holding up to 100% foreign ownership.
Exemptions from corporate income tax up to 10 years.
Total or partial exemptions from customs duties.
Facilitating allocation of land in accordance with local laws.
Facilitating the employment of foreign labour required for the investment
in accordance with local laws.
Benefiting from bilateral treaties.
Extended applicability to PPP and privatizations projects.
The Kuwait Council of Ministers may grant
e
xtra
incentives and exceptional privileges
on
a case by case basis depending on the value, the size and the pertinence of
the project.Slide12
KDIPA Guarantees
Free transfer and repatriation of foreign investors profits &
capital.
No nationalization nor expropriation without fair & timely compensation.
Transfer in part or entirely to another foreign investor.
Confidentiality, protection of Intellectual Property and project information.Slide13
KDIPA Negative List Slide14
KDIPA
100% Foreign OwnershipIndustries
Infrastructure (Water, Power, Water Treatment, Communications)InsuranceInformation Technology and Software Development Hospitals and Pharmaceuticals
Air, Land, and Sea Freight
Tourism, Hotels, Entertainment
Housing Projects and Urban Development Slide15
Taxation
Tax
indicators
R
esident
Non-resident
*
Fiscal
year
end
Calendar
year
Calendar
year
Companies
Income
tax
Not
applicable.
However, Kuwaiti
(Closed)
Shareholding
Companies
are
subject
to
1%
zakat,
1%
contribution
to
the
Kuwait
Foundation
for
the Advanced
Sciences, and
2.5% National
Labour
Support
Tax
(if
listed
on the
Kuwait
stock
exchange).
Taxed as
ordinary
income. Capital
gains from
shares
listed
on the
Kuwaiti
Stock Exchange
are
exempt
from
taxation.Tax on capital gainsNoneTaxed as ordinary income. Capital gains from shares listed on the Kuwaiti Stock Exchange are exempt from taxation.General sales taxNot applicableNot applicableValue added taxNot applicableNot applicableIndividualsIndividual marginal tax rate (max)Not applicableNot applicableBasis of taxationNot applicableNot applicableWithholding taxDividendsNot applicableNot applicable, except for a 15% withholding tax on dividends earned by foreign investors from securities listed on the Kuwaiti Stock Exchange.InterestNot applicableNot applicable. Interest received is taxed at 15%.RoyaltiesNot applicableNot applicable Royalties received are taxed at 15%Management service feesNot applicableNot applicable Management fees are taxed at 15%RetentionPayments to foreign suppliers / service providers are subject to 5% retention, which tax is releasedonce the foreign recipient produces a a Tax Clearance Certificate from the Kuwait Tax Authorities.CustomsStandard rate is 5%. Other rates (0%, 100%) apply depending on the nature of the goods.Exchange controlsNot applicableThin capitalisationNot applicableTransfer pricingDepending on the activity a deemed profit margin is applied, ranging from 5% (third parties) to 30%(related parties).Double taxation treatiesAlbania, Armenia, Austria, Azerbaijan, Belarus, Belgium, Brunei, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Djibouti, Egypt, Ethiopia, France, Georgia, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Italy, Japan, Jordan, Korea, Laos, Latvia, Lebanon, Malaysia, Malta, Mauritius, Moldova, Morocco, Netherlands, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Serbia and Montenegro, Singapore, Slovakia, Slovenia, Tajikistan, South Africa, Spain, Sri Lanka, Sudan, Switzerland, Syria, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, Ukraine, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.Treaties awaitingconclusion or ratificationAlgeria, Bangladesh, Benin, Bosnia and Herzegovina, Guyana, Kenya, Lithuania, Luxembourg, Macedonia, Nigeria, Senegal, Seychelles.Slide16
First licensed project on January 15, 2015 granted to IBM-ME, to establish a 100% foreign ownership IBM Kuwait, followed by Huawei and General Electric.
Recent success storiesSlide17
Mega Projects Agency &
Kuwait Authority for Partnership Projects
The
ongoing second
development plan (2015/2016-2019/2020) has investment of US$ 103 billion of which 30 projects in nine crucial sectors including oil & gas, North Zone Development, electricity & water, Urban Development & housing, Health, Education, transport & communications, tourism & media, and
environment.
Relevant Authorities implementing
Kuwait Vision 2035 Slide18
Kuwait Metro Project
. Cost $7bn. The Kuwait Metro Rail is a 171km long inner city transport running across the city
Current
Projects
Kuwait International Airport Expansion
. Cost $7bn
Sheikh
Jaber
Al Ahmad Al Sabah Causeway
- Phase 2 (Doha Link). Cost $
7bn (Hyundai)
Sheikh
Jaber
Al Ahmed Al Sabah Causeway
- Phase 1 (
Subiya
Causeway). Cost $
2.6bn (Hyundai – Korea)Slide19
Kuwait
Islands Project
2035
Failaka
Island :
12
Kms
long, 6
Kms
wide,
Boubyan
Island
: 863
sq.
kms
Warba
Island
: 37
sq.
kms
.
Miskan
Island:
0.75 Km2
Auhah
Island:
0.35 Km2
Umm an
Namil
Island:
0.30 Km2
Umm al
Maradim
Island2
: 0.65 km2.
Umm an
Namil
Island
: 0.30 km2.Slide20Slide21Slide22Slide23Slide24
Thank you
謝謝